Tennessee Car Insurance: A Guideline to Auto Insurance Requirements

Car insurance requirements vary from state to state, and those residents who have recently moved to Tennessee should not assume that the coverage they previously carried on their car will be sufficient. Tennessee only requires that its drivers maintain a liability policy on their vehicles, thereby providing coverage for damages inflicted upon another driver and vehicle in the event that the insured causes an accident. Minimum levels of liability in TN are twenty five thousand dollars for medical expenses incurred by a single driver, fifty thousand dollars for the combined medical expenses of all persons in the vehicle at the time of the accident and ten thousand dollars for all property damage resulting from the accident, including that suffered by the vehicle of the victim. As repair costs and medical expenses can quickly exceed these amounts and the insured will be ehld personally liable for these excesses it is strongly recommended that drivers not simply purchase the minimum level of insurance.

Not required for all drivers (although it may be for vehicles currently under lien) is collision and comprehensive insurance. Without collision insurance the driver of the vehicle responsible for an accident will be solely responsible for paying for the repairs needed by their own car. Collision will help cover these costs up to the Kelley Blue Book value of the vehicle, and if costs are found to be in excess of this amount the vehicle will be declared “totaled” and the owner awarded the cash value of the car. Gap coverage may also be available along with collision for those cars whose Blue Book value does not equal the remaining balance on their lien.

Also not required but strongly recommended is uninsured car insurance, particularly in consideration of the fact that Tennessee’s southeast neighbor, South Carolina, does not require its residents to purchase a liability policy. Uninsured motorist insurance will help cover the costs (both medical and repair) resulting from an accident for which a motorist who does not possess insurance is responsible. This will also help provide for the victims of a hit and run.

For more information concerning TN’s policies consumers can contact the Tennessee Department of Commerce and Insurance located in Nashville by visiting their website at http://tn.gov/commerce/insurance/index.shtml.